AkzoNobel publishes Q2 2010 results

ID: 1018078
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(Thomson Reuters ONE) -

    · Revenue up 13 percent to ?3.9 billion (5 percent in constant currencies)
    · EBITDA ?614 million (2009: ?506 million), up 21 percent
    · EBITDA margin 15.7 percent (2009: 14.7 percent)
    · 2011 EBITDA margin target of 14 percent already achieved
    · Sale of National Starch to complete in H2
    · Cautiously optimistic in spite of continuing economic uncertainty

Related graphs can be found in the attached pdf version of the press release.

Akzo Nobel N.V. (AkzoNobel) today announced a revenue increase of 13 percent (5
percent positive currency translation effect) ) for the second quarter of 2010
and the early achievement of the 14 percent EBITDA margin target set for the end
of  2011.

Strong revenue gains were achieved in the higher growth markets in all business
areas. Revenue improved 8 percent at Decorative Paints due primarily to its
strong footprint in these markets, where the business is growing faster than the
market, offset by lower or negative revenue development in mature markets. Both
Performance Coatings and Specialty Chemicals booked double-digit revenue growth
(19 percent and 14 percent respectively), mainly driven by higher volumes.

EBITDA for the second quarter was ?614 million, 21 percent higher than in 2009,
with total net income up 76 percent to ?273 million.

During the quarter AkzoNobel announced the US$1.3bn sale of National Starch,
completing the divestments of non-core former ICI businesses, a US$3 billion
revenue target for China by 2015, and the completion of the acquisition of the
powder coatings activities of the Dow Chemical Company.

While Q2 was clearly a good quarter, AkzoNobel remains vigilant about the pace
and sustainable nature of the economic recovery. Nevertheless, the company is
cautiously optimistic about the prospects for the remainder of the year.

CEO Hans Wijers
"Our Q2 results show a further increase of revenue and profitability across each
of AkzoNobel's business areas, evidencing that we are benefiting from the
recovery and our on-going restructuring. Our focus on customers, cost reduction
and cash generation, while increasing our exposure to our higher growth markets,
which currently represent close to 40 percent of revenue, has been highly
beneficial. AkzoNobel is emerging from the global economic crisis in better
shape underlined by the early achievement of our 2011 EBITDA margin target of
14 percent.

"With the ICI integration complete and a number of important targets having been
achieved, we can concentrate fully on accelerating our growth agenda and
building our presence in key strategic markets.

"The importance of these markets, which will continue to have a major influence
on our global activities and strategic agenda, was highlighted by our Q2
performance, particularly at Decorative Paints, where revenue increased 38
percent in Asia compared with 2009 as we invest in brands and distribution. In
addition, it was another strong quarter for our Performance Coatings business,
with Asia again featuring prominently. The 15 percent volume increase at
Specialty Chemicals also owed much to these higher growth regions.

"The developed markets remain challenging. Raw material price pressure and
shortages are expected to continue into the third quarter. We will keep a
careful eye on the trading environment and costs will continue to be managed
aggressively. Our balance sheet remains strong and we have no immediate
refinancing requirements. We will provide an update regarding the company's
future ambitions at a capital markets day scheduled to take place in London on
September 28.

Business Area highlights

  Decorative Paints

Q2 2010 Q2 2009 ?%   H1 2010 H1 2009 ?%

1,401 1,292 8 Revenue 2,457 2,280 8

205 171 20 EBITDA 287 219 31

14.6 13.2   EBITDA margin (in %) 11.7 9.6

  Performance Coatings

Q2 2010 Q2 2009 ?%   H1 2010 H1 2009 ?%

1,260 1,061 19 Revenue 2,309 2,047 13

191 166 15 EBITDA 334 271 23

15.2 15.6   EBITDA margin (in %) 14.5 13.2

  Specialty Chemicals

Q2 2010 Q2 2009 ?%   H1 2010 H1 2009 ?%

1,258 1,103 14 Revenue 2,412 2,195 10

257 201 28 EBITDA 464 352 32

20.4 18.2   EBITDA margin (in %) 19.2 16.0

The Report for the second quarter of 2010 can be read on

- - -

AkzoNobel is the largest global paints and coatings company and a major producer
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers for
our customers. Our portfolio includes well known brands such as Dulux, Sikkens,
International and Eka. Headquartered in Amsterdam, the Netherlands, we are a
Global Fortune 500 company and are consistently ranked as one of the leaders on
the Dow Jones Sustainability Indexes. With operations in more than 80 countries,
our 55,000 people around the world are committed to excellence and delivering
Tomorrow's Answers Today(TM).

Not for publication - for more information

Corporate  Media  Relations, tel. +31 20 502 7833
Contact: Tim van der Zanden

Corporate Investor Relations, tel. +31 0 502 7854
Contacts: Huib Wurfbain and Ivar Smits


AkzoNobel half-yearly and Q2 2010 report: http://hugin.info/130660/R/1433650/379466.pdf
Pdf file AkzoNobel Q2 2010 press release: http://hugin.info/130660/R/1433650/379465.pdf

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Source: Akzo Nobel NV via Thomson Reuters ONE

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Date: 07/23/2010 - 01:00
Language: English
News-ID 1018078
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Firma: Akzo Nobel NV
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Stadt: Amsterdam


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